Al-Khair Co-operative Credit Society Review - Halal Finance Products
Reviewed quarterly and updated for major content changes.
Al-Khair Co-operative Credit Society offers halal financial products and services designed to align with Islamic principles. These options provide alternatives to conventional interest-based financial products, using structures like Murabaha, Ijara, and Musharakah.
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HalalWallet 2026 Review
Al-Khair Co-operative Credit Society - At a Glance
5
Products Reviewed
4
Provinces Served
3
Categories
Our Verdict
Al-Khair is the most documented interest-free credit cooperative in northern India, and its website does something rare in this sector: it prints the actual numbers. Membership costs, deposit rules, loan tenors, service charges and eligibility gates are all published, which lets a prospective member make an informed decision rather than a trusting one. The model is deposit-and-qard: savings earn nothing, loans charge a fixed one-time service charge plus GST instead of interest. The caveats deserve equal prominence. This is a cooperative society, not an RBI-licensed bank, so deposits carry no DICGC insurance. There is no Shariah board. And the mid-term business loan's 16% to 18% one-time charge, scaling with loan size and tenor, functions economically closer to interest than to cost recovery, a tension the strict qard hasan literature does not resolve in Al-Khair's favour even though the society frames it as a service charge. For small, short loans and disciplined doorstep saving, Al-Khair is a genuine moneylender alternative; for larger financing, members should read the charge schedule with clear eyes.
Pros & Cons
What We Like
- Registration number, permitted states and registered office printed on the site header
- Full price transparency: membership costs, deposit minimums and loan service charges published
- Doorstep daily-deposit collection suits informal-sector earners with daily cash income
- No interest paid or charged anywhere in the deposit and loan shelf
- Part of the Sahulat network, whose published advisories set sector standards
What Could Be Better
- No DICGC deposit insurance: cooperative deposits are unprotected if the society fails
- No Shariah supervisory board or named scholars
- Mid-term loan charges of 16% to 18% of the loan amount sit uneasily with strict qard hasan cost-recovery principles
- Branch presence is thin outside Bihar (two Jharkhand, two Lucknow, one Delhi listed)
- 13 branches claimed but only 11 listed; website has character-encoding defects in places
Who Is Al-Khair Co-operative Credit Society Best For?
Daily-wage earners and street vendors in Patna and Bihar towns
Authorised collectors pick up daily deposits at the doorstep, replacing both the moneylender and the mattress
Members needing small emergency credit without interest
The 8-month demand loan against member deposits and shares carries a one-time charge, not compounding interest
Micro-entrepreneurs with 3-month working-capital cycles
The short-term business loan prices a single 8% charge for a 3-month tenor with published eligibility gates
Detailed Analysis
Al-Khair Co-operative Credit Society Limited was established in 2002 by around 20 founders, opening its first office at Haroon Nagar, Phulwari Sharif, Patna on 18 August 2002. It is registered under the Multi-State Co-operative Societies Act 2002 with registration number MSCS/CR/136/2002, printed in the site header together with its four permitted states: Bihar, Jharkhand, Uttar Pradesh and Delhi. Since the creation of the Ministry of Cooperation, multi-state societies fall under its supervision, which the site notes. The society describes itself as a completely interest-free microfinance institution serving slum dwellers and micro-entrepreneurs who otherwise depend on moneylenders charging 60% to 120% a year (alkhairsociety.com, crawled 2026-08-06).
Membership mechanics are published in full, which is not the norm in this sector. Joining requires shares of INR 10 each (minimum ten shares, so INR 100), an admission fee of INR 50 and a donation of INR 50. All products are members-only. The deposit shelf spans the Amanat savings account (minimum INR 100, withdrawable anytime), the Daily Deposit account with authorised collectors calling at homes and shops, Sahyog six-month deposits designed for philanthropists whose funds support lending capacity, earmarked guarantee funds, and a Haj account for pilgrimage saving. The society states plainly that no deposit earns interest; the saver's return is safety, discipline and access to credit (crawled 2026-08-06).
The loan shelf prices in one-time service charges under Lending Rules the board approved on 31 December 2011. Three products are published: a demand loan repayable over 8 months, a short-term business loan over 3 months carrying an 8% one-time charge, and a mid-term business loan over 8 to 12 months carrying 16% to 18% plus GST. Eligibility gates are equally explicit: an account at least 3 months old, deposit balance and shareholding each worth 10% of the loan sought, guarantors, and security scaling with loan size. These published gates matter: they let a member calculate the true cost of credit before applying, something no informal moneylender offers (crawled 2026-08-06).
The fiqh tension in the model should be stated honestly. Classical qard hasan permits a lender to recover actual administrative costs but not a return that scales with the loan. A flat 8% charge on a 3-month loan and 16% to 18% on an 8-to-12-month loan are both proportional to loan size and roughly proportional to tenor, which makes them function economically like interest even though they are single charges rather than accruing rates. Sahulat, the network Al-Khair belongs to, defends the service-charge model as legitimate cost recovery for a sector that receives no subsidy and must pay staff and branch costs from operations. No Shariah board adjudicates this at Al-Khair: the society publishes no scholars, and its Islamic claim is structural (no interest on deposits, no interest on loans) rather than certified. Members for whom scholar sign-off is essential will not find it here or anywhere in Indian cooperative finance.
The regulatory position is the other half of the honest picture. Al-Khair is a cooperative society under the MSCS Act 2002, not an RBI-licensed bank: deposits carry no DICGC insurance, prudential supervision is lighter than banking regulation, and the RBI has repeatedly warned the public about credit societies using bank-like branding (Al-Khair does not call itself a bank). Against that, the society's 23-year operating history, published branch network with addresses and phone numbers across four states, and affiliation with the Sahulat network are the reassurance available. For its target member, whose realistic alternative is a moneylender at 60% to 120% a year or exclusion from credit entirely, Al-Khair's published 8% to 18% one-time charges and interest-free savings are a materially better and more transparent deal.
How It Works
Al-Khair runs a deposit-and-qard cooperative model. Members buy shares (INR 10 each, minimum ten) and pay a INR 50 admission fee plus INR 50 donation. Deposits (Amanat savings, Daily Deposit, Sahyog, guarantee funds, Haj account) earn no interest and fund the loan book. Loans are priced with one-time service charges under board-approved Lending Rules dated 31 December 2011 rather than accruing interest: 8% for the 3-month short-term business loan, 16% to 18% for the 8-to-12-month mid-term loan, plus GST. Eligibility requires 3 months of account history and deposit balance plus shareholding each worth 10% of the loan. The society is registered under the Multi-State Co-operative Societies Act 2002 (MSCS/CR/136/2002) and is not an RBI-licensed bank: no DICGC deposit insurance applies.
Join as a member
Buy at least ten INR 10 shares and pay the INR 50 admission fee and INR 50 donation at any branch; services are members-only.
Open a deposit account
Choose Amanat savings (minimum INR 100, withdraw anytime), the Daily Deposit with doorstep collectors, a Sahyog six-month deposit or a Haj account; nothing earns interest.
Build eligibility
After 3 months of account history, with balance and shares each at 10% of the loan you want, you can apply with guarantors and the listed security.
Borrow at a one-time charge
Take a demand loan (8 months), short-term business loan (3 months, 8% one-time charge) or mid-term business loan (8 to 12 months, 16% to 18% plus GST) and repay in instalments.
Shariah Compliance Review
Oversight Level
Review details on provider's website
Registered under the Multi-State Co-operative Societies Act 2002, registration MSCS/CR/136/2002, printed in the site header with permitted states Bihar, Jharkhand, Uttar Pradesh and Delhi (alkhairsociety.com/Registration, crawled 2026-08-06)
Supervised under the Ministry of Cooperation, Government of India, per the site (crawled 2026-08-06)
Not an RBI-licensed bank: no DICGC deposit insurance on any deposit product (regulatory position of all Indian credit cooperatives)
No Shariah supervisory board or named scholars published; interest-free claim is structural under board Lending Rules approved 31 December 2011 (crawled 2026-08-06)
Affiliate of the Sahulat Microfinance Society network, whose published advisories set interest-free sector standards (sahulat.org, crawled 2026-08-06)
Shariah compliance should always be verified directly with Al-Khair Co-operative Credit Society. HalalWallet reports publicly available oversight information but does not issue fatwas or certify compliance.
How It Compares
Against Bait-Un-Nas'r in Mumbai, Al-Khair covers four northern states where Bait-Un-Nas'r covers Greater Mumbai and Thane only, but Bait-Un-Nas'r brings a 50-year history and a wider secured-loan shelf (gold, vehicle, property). Against Janseva, Al-Khair's permitted footprint is smaller (four states versus twelve) but its published loan pricing is more concrete: Janseva publishes priorities and eligibility percentages, Al-Khair publishes actual charges and tenors. Against the informal alternative its members actually face, moneylenders at 60% to 120% a year, Al-Khair's 8% to 18% one-time charges with published rules are a different world. Against an RBI-regulated small finance bank, Al-Khair loses on deposit insurance and wins on the absence of interest.
vs. Bait-Un-Nas'r Urban Co-operative Credit Society
Mumbai and Thane only, but 50 years of operation, nine branches and secured qard hasan lines against gold, vehicles and property.
vs. Janseva Co-operative Credit Society
Twelve permitted states and explicit Quran-and-Sunnah constitutional language, with amanah deposits and SHG group microfinance.
vs. Sahulat Microfinance Society
Not a lender but the network promoter: use its affiliate directory to find other interest-free societies if you live outside Al-Khair's four states.
Bottom Line
Al-Khair is northern India's benchmark interest-free cooperative: registered, price-transparent and genuinely cheaper and safer than the moneylenders it replaces. Go in knowing the two hard limits - no deposit insurance and no Shariah board - and read the 16% to 18% mid-term charge critically if strict qard hasan cost recovery matters to you.
Products from Al-Khair Co-operative Credit Society
Why It's Halal
The site states categorically that 'no interest is paid on any deposit' and deposits are accepted only from members, making this a pure safekeeping-and-thrift account rather than a return-bearing product. Membership requires shares (ten shares of INR 10) plus INR 50 admission fee and INR 50 donation, and the account is a documented precondition for interest-free financing (account 3 months old, regular deposits, balance at 10% of any loan sought). Honest caveats: shares are stated as non-transferable and non-refundable for 3 years on the DD page; there is no published Shariah board; and It is a registered cooperative society, not an RBI-licensed bank: deposits carry no DICGC insurance and no banking-regulator protection. The society operates under registration MSCS/CR/136/2002 in Bihar, Jharkhand, Uttar Pradesh and Delhi (crawled 2026-08-06).
Al-Khair Co-operative Credit Society
Daily Deposit (DD) Account
Al-Khair's core doorstep savings product: a recurring daily or weekly deposit account opened with a minimum of INR 50 (multiples of INR 10 thereafter) into which an authorised society collector gathers savings at the member's shop or home, recording each collection on a signed card held by the member and a matching book entry. Joint accounts of up to two persons are allowed, both must be shareholders. Withdrawals open only after the next calendar month from deposit, up to deposits made through the previous-to-last month, with a minimum balance of INR 50; the passbook must be presented monthly and withdrawals happen at the branch counter. A regular DD history is the gateway to Al-Khair's loan products. No interest is paid on any deposit (crawled alkhairsociety.com 2026-08-06).
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Al-Khair Co-operative Credit Society
Amanat / Saving Account
Al-Khair's on-demand deposit account family. The What-is-Al-Khair page describes the Amanat account as 'like a saving account': members deposit and withdraw anytime with a minimum balance of INR 100. The dedicated Saving Account page adds limits for the saving variant: a member may place INR 5,000 up to a maximum of INR 10,000 per account, with withdrawals during working hours on any working day, and authorises the society to use the funds for lending to needy members. Loan disbursements are normally credited to the member's Amanat account. Alongside sit special-purpose deposits: Sahyog (philanthropists' six-month deposits to grow the society's business), earmarked guarantee funds held against a specific member's loan, and a Haj account for pilgrimage savings. No interest is paid on any deposit (crawled alkhairsociety.com 2026-08-06).
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Al-Khair Co-operative Credit Society
Demand Loan (Interest-Free, One-Time Service Charge)
Al-Khair's 8-month personal and household loan for members with an active deposit history, priced by a fixed one-time service charge plus GST instead of interest. Eligibility is published precisely: registered membership, an account at least 3 months old and actively operated, regular and consistent daily deposits, and an account balance of 10% of the requested loan. The application requires a form (INR 20 fee), shares worth 10% of the loan amount, guarantors (one member plus one family member below INR 1 lakh; two members plus one family member for INR 1 lakh and above) and one security item: a bank cheque, gold, an original property document or an original vehicle document. Disbursement is normally credited to the member's Amanat account by cheque, NEFT/RTGS or approved cash. A Local Advisory Committee may approve mutually agreed loan and repayment terms within society norms (crawled alkhairsociety.com 2026-08-06).
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Al-Khair Co-operative Credit Society
Short-Term Business Loan (3 Months, 8% One-Time Charge)
A 3-month working-capital loan for shopkeepers and small business owners, priced at a fixed 8% of the loan amount as a one-time service charge plus GST, explicitly 'not interest-based'. Eligibility mirrors Al-Khair's published lending gates: registered membership, an account at least 3 months old with regular daily deposits, balance at 10% of the requested loan, shares worth 10% of the loan, guarantors (one member plus one family member below INR 1 lakh; two members plus one family member at INR 1 lakh and above), one security item (bank cheque, gold, property or vehicle document) and detailed business information. The branch is instructed to avoid issuing loans against gold, valuables or documents where possible, and the Local Advisory Committee may approve mutually agreed terms. Disbursement goes to the member's Amanat account (crawled alkhairsociety.com 2026-08-06).
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Al-Khair Co-operative Credit Society
Mid-Term Business Loan (8 to 12 Months, 16% to 18% One-Time Charge)
Al-Khair's larger business expansion loan: 8 to 12 month tenor for established businesses seeking growth, priced by a fixed service charge of 16% to 18% of the loan amount depending on amount and duration, on a one-time basis plus GST, explicitly 'not interest-based'. Eligibility and process follow the society's published lending rules: membership, 3-month active account with regular daily deposits, balance at 10% of the loan, shares worth 10% of the loan, guarantor slabs at the INR 1 lakh threshold, one security item, detailed business information and an INR 20 application form. The Local Advisory Committee may approve mutually agreed loan and repayment terms within society norms, and disbursement is credited to the member's Amanat account (crawled alkhairsociety.com 2026-08-06).
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Where Available
Based on listings we track, Al-Khair Co-operative Credit Society may be available in the following states:
Availability may vary by product type. Always verify current availability directly with Al-Khair Co-operative Credit Society.
How We Compare
- • We review publicly available information from providers, including Shariah compliance documentation.
- • We compare financing structures, total costs, down payment requirements, and state availability.
- • We prioritize providers that clearly explain their halal compliance rationale and operate with transparency.
- • We note which products are available nationwide versus regionally.
- • Learn more about our methodology.
Quick Answer
Al-Khair Co-operative Credit Society offers halal financial products that comply with Shariah principles, avoiding interest (riba) and prohibited industries. Their products are available in 4 states and include Bank Accounts, Business Financing, Personal Financing options.
Key Takeaways
- Al-Khair Co-operative Credit Society offers Shariah-compliant financial products that avoid interest and prohibited industries.
- Products are available in 4 states: BR, DL, JH, UP.
- Product categories include Bank Accounts, Business Financing, Personal Financing.
- Always verify compliance directly with Al-Khair Co-operative Credit Society and consult qualified Islamic finance advisors when needed.
- Compare Al-Khair Co-operative Credit Society's products with other providers to find the best fit for your needs.
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-09
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Related Guides
Frequently Asked Questions
What types of halal products does Al-Khair Co-operative Credit Society offer?
Al-Khair Co-operative Credit Society offers 5 products across 3 categories. Al-Khair Co-operative Credit Society is best for [object Object],[object Object],[object Object]. Review the products listed above or contact Al-Khair Co-operative Credit Society directly for current offerings.
How does Al-Khair Co-operative Credit Society ensure Shariah compliance?
Registered under the Multi-State Co-operative Societies Act 2002, registration MSCS/CR/136/2002, printed in the site header with permitted states Bihar, Jharkhand, Uttar Pradesh and Delhi (alkhairsociety.com/Registration, crawled 2026-08-06) Supervised under the Ministry of Cooperation, Government of India, per the site (crawled 2026-08-06) Not an RBI-licensed bank: no DICGC deposit insurance on any deposit product (regulatory position of all Indian credit cooperatives) No Shariah supervisory board or named scholars published; interest-free claim is structural under board Lending Rules approved 31 December 2011 (crawled 2026-08-06) Affiliate of the Sahulat Microfinance Society network, whose published advisories set interest-free sector standards (sahulat.org, crawled 2026-08-06)
How does Al-Khair Co-operative Credit Society work?
Join as a member: Buy at least ten INR 10 shares and pay the INR 50 admission fee and INR 50 donation at any branch; services are members-only. Open a deposit account: Choose Amanat savings (minimum INR 100, withdraw anytime), the Daily Deposit with doorstep collectors, a Sahyog six-month deposit or a Haj account; nothing earns interest. Build eligibility: After 3 months of account history, with balance and shares each at 10% of the loan you want, you can apply with guarantors and the listed security. Borrow at a one-time charge: Take a demand loan (8 months), short-term business loan (3 months, 8% one-time charge) or mid-term business loan (8 to 12 months, 16% to 18% plus GST) and repay in instalments.
Is Al-Khair Co-operative Credit Society available in my state?
Based on listings we track, Al-Khair Co-operative Credit Society may be available in 4 states. However, availability can vary by product type. Always verify current availability directly with Al-Khair Co-operative Credit Society.
What are alternatives to Al-Khair Co-operative Credit Society?
Against Bait-Un-Nas'r in Mumbai, Al-Khair covers four northern states where Bait-Un-Nas'r covers Greater Mumbai and Thane only, but Bait-Un-Nas'r brings a 50-year history and a wider secured-loan shelf (gold, vehicle, property). Against Janseva, Al-Khair's permitted footprint is smaller (four states versus twelve) but its published loan pricing is more concrete: Janseva publishes priorities and eligibility percentages, Al-Khair publishes actual charges and tenors. Against the informal alternative its members actually face, moneylenders at 60% to 120% a year, Al-Khair's 8% to 18% one-time charges with published rules are a different world. Against an RBI-regulated small finance bank, Al-Khair loses on deposit insurance and wins on the absence of interest. Bait-Un-Nas'r Urban Co-operative Credit Society: Mumbai and Thane only, but 50 years of operation, nine branches and secured qard hasan lines against gold, vehicles and property. Janseva Co-operative Credit Society: Twelve permitted states and explicit Quran-and-Sunnah constitutional language, with amanah deposits and SHG group microfinance. Sahulat Microfinance Society: Not a lender but the network promoter: use its affiliate directory to find other interest-free societies if you live outside Al-Khair's four states.
Are Al-Khair Co-operative Credit Society's products more expensive than conventional options?
Halal financing structures can have different fee structures compared to conventional products. Some options may be competitive with conventional rates, while others may have different cost structures. Pricing varies by product type, location, and individual circumstances. Always compare total costs and terms when evaluating options.
How do I contact Al-Khair Co-operative Credit Society?
Contact information for Al-Khair Co-operative Credit Society should be available through their website or the product listings above. Use the action links provided with each product to visit Al-Khair Co-operative Credit Society's website or contact them directly for more information.
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